Category Archives: Business

Sexual Harassment in the Workplace


You are a hr manager a female employee comes to you upset because a male co worker was  creating a hostile work environment by repeatedly asking her out on dates even after she said no. what would you do?formulate the conversation you would have and summarize the conversation you would have with the employee’s male co worker

Sample paper

Sexual Harassment in the Workplace

Sexual harassment is a serious problem in the workplace. It involves unwelcome behavior by one individual to another. The behavior can be either direct or implied as long as it causes discomfort to the other individual (Gandhi, 2015). Majority of sexual harassment cases in the workplace often go unreported due to fear of reprisal. This may lead to stress, depression, stigmatization, and other serious health issues upon the victim. Sexual harassment mainly involves women as the victims and men as the perpetrators. Repeatedly asking a female colleague out on a date, despite her declining the invitations, is a form of sexual harassment (Gandhi, 2015). As the HR Manager, it is important to curtail such a behavior exhibited by the male colleague. A meeting with the perpetrator can help in solving the issue. The following is the possible conversation with the male co-worker.

HR Manager: Good morning, it is my hope your day started well. The reason for this meeting is to discuss issues concerning sexual harassment in the workplace. As you are aware, the company has a very strict policy concerning sexual harassment. The company will not hesitate to take action against employees who go against this policy. There has been a formal report made against you concerning harassing a female colleague. In particular, the report indicates that you have pestered your colleague with numerous requests that she accompanies you out for a date. Despite being turned down on several occasions, you continue with the behavior. What do you have to say?

Male Co-Worker: Well, I am surprised that it has come to this level. Actually, I did ask her out on a few occasions but I had not intend to cause any discomfort nor violate any of her rights. Although she turned down my offer, I had hope that she would one day accept to go out with me.

HR Manager: Do you have anything to add?

Female Co-worker: Not much. I clearly indicated to him that I was not willing to date, but he has been pursuing me relentlessly to the point that I feel my rights are being violated. I believe I have the right to choose whether I should date or not.

HR Manager: After carefully assessing this issue, I have concluded that you are creating a hostile environment for your colleague to work in. Although you may not realize, it is clear your behavior is annoying your colleague. Worse still, your behavior goes against the company rule. As such, you must stop that behavior immediately. Since this is the first offense, I will leave the issue there. However, I will still send you a letter detailing the company’s policy over sexual harassment for record purposes. You are dismissed.


Gandhi, M. N. (2015). Handbook on Sexual Harassment of Women at Workplace. Retrieved        from    omen%20at%20Workplace.pdf


Survey of Human Resource Management

Survey of Human Resource Management


Describe and analyze the broad range of talent management efforts that use software applications to help you Director to make an educated decision. Give some examples of firms that have successfully used these applications. Describe how these efforts are useful in terms of strategic human capital management.

Sample paper

Software PPT

Speaker notes

  • A software is a set of instructions and programs that are used to operate computers and machinery. It is usually divided into applications software and system software and can be thought to be the variable part of a computer or machinery(Kumar, 2013).
  • However, not all software are compatible with all hardware and thus, there is the need to perform a compatibility test to determine the best software that suits a situation or an organization.
  • A computer-based information system has various components such as hardware, software and human resource making it very hard for one to operate without the other. Thus, they all must be used together.

Types of software

  • There exists a wide range of software that can be utilized on various occasions depending on the situation and magnitude of workload. It is worth noting that there is no single software that can be proposed for certain situation and thus, the user must conduct its usability and compatibility before installing(Reuwer, 2013).
  • A software helps people and organization to use a computer and other computer related machines to operate thus improving our efficiency and effectiveness as well as total productivity.
  • However, for an individual to be in a position to use specific software, he must display some knowledge and skills in that field. Failure to have these much-needed skills will lead top failure of the software.

Related:Human Resource Management

Accounting software

  • Accounting software is an application software that can be used by individuals and organization to record, process accounting transactions with functional elements such as accounts payable, accounts receivable and trial balance(Schorr, 2013).
  • Accounting software enables the collection, storing and processing financial and accounting data to provide and retrieve information that is used by decision makers in the future of the business.
  • This software can be acquired through various methods and ways that include in-house development by the host organization, purchasing it from a third party or combining a third party application with minor modifications to suit the situation.
  • A good example of an accounting software is enterprise accounting software that helps an organization to keep track of financial transactions and the data and information produced by these transactions.

Collaboration software

  • Collaborative software is a groupware or software that can be used by more than one person that is usually created and designed to allow individuals to perform a similar task from different workstations(Ramler, 2016).
  • Collaboration software can also be referred as confluence software that allows easy communication and access to company records that are widely used to make decisions as it facilitates quick collaboration and sharing of information.
  • Moreover, online collaboration helps individuals from various parts and stations to work online with their colleagues using the cloud to aid communication, file sharing, and project management.
  • A good example of this software is Lotus Notes that are widely focused in communications.

Database software

  • A database is a computer software application that creates a platform where the users, other applications and the database itself can interact freely with no limitations(Ambler, 2012).
  • The basic purpose of this software is to define, searching, updating and the administration of databases that helps in preventing data loss in case of danger.
  • This software provides a channel that can be used to store as well as retrieve information whenever needed for decision-making as well as providing insight into the progress and performance of the business.
  • One of the popular databases that can be used in an organization is Oracle database.

Project management software

  • Project management software is widely used by project managers, stakeholders, and other users to control the costs and work in progress on on-going projects as it widely helps in project scheduling and resource allocation(Burke, 2013).
  • Each project management software is highly dependable on the size of the project in question considering that is can also help to keep a record and track on the capacity of the people and other materials that are used to complete the project.
  • It helps to maintain the quality of the project and the goods and services provided by an organization through quality assurance as well as budgeting. The best and ideal example of Project management software is the Harvest.


  • A software is important to any organization that desires to go digital, and the hardware cannot operate on their own. However, the organization must perform a background study of each software before adapting.
  • High skills are needed in operating this software to guarantee better and accurate results.


  • Ambler, S. (2012). Agile database techniques: Effective strategies for the agile software developer. John Wiley & Sons.
  • Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.
  • Kumar, J. (2013). Gamification at work: Designing engaging business software. In International Conference of Design, User Experience, and Usability , (pp. 528-537). Springer Berlin Heidelberg.
  • Ramler, R. F. (2016). Industry-Academia Collaboration in Software Testing: An Overview of TAIC PART 2016. In Software Testing, Verification and Validation Workshops (ICSTW), 2016 IEEE Ninth  International Conference on , (pp. 238-239). IEEE.
  • Reuwer, T. J. (2013). Key factors in the internationalisation process of SMEs exporting business software as a service. . International Journal of Business Information Systems, 12(2), , 140-162.
  • Schorr, M. S. (2013). U.S. Patent No. 8,442,850. Washington, DC: U.S. . U.S. Patent and Trademark Office.



HR Management

Aflac Insurance Case Study


This case involves a fictitious company, D-Bart Industries, formed by the merger of Davis Manufacturing and Bartlund Technologies, 2 former rivals in the fabrication of precision parts used in medical equipment and airline manufacturing. The exercise requires analysis and application of various strategies utilized during downsizing and the use of performance appraisals in the decision-making process

Sample paper

Aflac Insurance Case Study

How the company uses its own products or services to enhance the total compensation for its employees

Aflac uses its own products to enhance the total compensation that its employees receive. One way of accomplishing this is by providing employees with insurance cover at a reduced cost. Employees are able to enjoy various insurance cover at a lower cost compared to that incurred by the customers. For instance, the company provides employees with a cancer policy and accident protection cover. The cancer policy is free while the company subsidizes the accident protection cover. This means employees enjoy lower costs. The company provides training and development to employees at no cost. This prepares employees for promotions as they advance in their careers. The company provides employees with training opportunities and involvement in leadership programs where they gain critical management or leadership skills. Another way Aflac uses its own products to enhance the total compensation is by paying employees 100 percent of their premium. These premiums relate to the cancer insurance scheme.

The internal and external strengths and weaknesses identified and how the company responded to these factors from a total rewards perspective

Internal strengths

They are factors within a company that enables it gain a competitive advantage (Kazmi & Kazmi, 2008). The company has a number of internal strengths. One of its key internal strengths is high employee loyalty. A large segment of Aflac’s employees (90 percent) prefers staying at Aflac while only a small segment would prefer to seek employment elsewhere. This indicates high employee satisfaction levels leading to low employee turnover rates. It is worth noting that high employee turnover rates are costly to business organizations. The company developed high employee loyalty by compensating employees well and by establishing a total rewards program. The company is listed in the New York Stock Exchange. This enables the company to raise enough capital for expansion purposes through the sale of shares. Another strength is brand awareness.

External strengths

They are factors outside the company that improve its competitive advantage (Kazmi & Kazmi, 2008). Aflac has opened a subsidiary in Japan, Aflac Japan. This helps in cushioning the company from the local economic shocks that the company may experience. For instance, while the U.S. economy may experience sluggishness, the business environment in Japan could be favorable. This would ensure that the company does not suffer a total loss. Another external strength is the relatively stable economic environment the company operates. A stable economic environment fosters growth. From March 2008, the company seems to have recovered from the recession since it added four employees signifying growth.

Internal weaknesses

They are factors within the company that lead to strategic disadvantages. The company has total control over these factors (Kazmi & Kazmi, 2008).The company incurs high expenditure especially in form of employee benefits. In addition, due to business growth the company seeks to hire new employees every year, which increases the cost of doing business. The company has conducted three mass layoff events in 2007 and 2008. These layoff events may negatively affect the productivity of employees due to job insecurity.

External weaknesses

They are factors that the company cannot be able to control and lead to strategic disadvantages (Kazmi & Kazmi, 2008). One of the key external weaknesses facing Aflac is lack of a pool of trained work force. The Bureau of Labor Statistics (BLS) indicates that there is a meagre 3.3 percent unemployment rate in the insurance industry. This means that the company has to spend a lot in attracting and retaining employees. This means employees have strong bargaining power, which could hurt the company financially if employees decide to ask for higher compensation. Another external weakness is the rising cost of health premiums, which is higher than inflation rates. As the cost of health providing health premiums increase, the company’s profits reduce. In addition, more consumers may be unable to afford health cover.

Examples of traditional and non-traditional rewards and how they are used to meet organizational objectives

Aflac provides its employees with both traditional and non-traditional rewards. Traditional benefits typically involve medical or health-related covers and insurance schemes (Muse & Wadsworth, 2012). On the other hand, non-traditional rewards include various modern financial incentives such as workplace benefits and childcare assistance (Hill & Jones, 2010). The traditional forms of rewards at Aflac Insurance include employer-paid life insurance, a subsidized accident protection insurance, employer-paid cancer cover, and employee benefits. The non-traditional rewards include recognition dubbed ‘Volunteer of the Month’, providing on-site childcare facilities, and sponsorship of outdoor adventure events for employees. These rewards are used to meet organizational objectives by ensuring that employees develop towards the company. The aim of the benefits is to make the employees develop a positive attitude towards the company. This improves the overall productivity.

How the company aligns its benefits with its corporate values

Aflac Insurance’s philosophy involves treating employees with dignity and respect. Among its guiding principles is to enrich the experience of employees and providing them with a better workplace. In light of this, the company aligns its benefits with its corporate values by being the preferred employer. The company strives to enrich the employee experiences and develop loyalty. The company offers employees the opportunity to grow or advance their careers through training and development. Among its organizational outcomes relating to employees are employee retention and training. The company has leadership programs that help in indoctrinating employees to management positions. Aflac has developed an effective total rewards statement that serves as an effective communication item. This tool help in communicating about cost sharing of the employee benefits and the compensation they are entitled to. This encourages employee retention.

Recommendations regarding an expansion of the benefits programs offered at the company that would further align HR with the accomplishment of organizational goals and values

There is need to expand further the current benefits program offered by Aflac Insurance. The benefits program should be expanded to include a comprehensive health plan. This plan should cater for inpatient and outpatient hospital care, surgery, physician care, prescription drugs, and dental care. The health program should be expanded to cover the employee’s families. The benefits program should include short term and long term disability plans to cater for employees who may experience disability while on duty. Another possible program is a financial planning program to help employees in managing their earnings and in light of growing expenses (Gomez-Mejia, Balkin, & Cardy, 2015). Aflac Insurance should also develop a benefits program that focuses on environmental conservation. In this era of climate change, the company should be at the forefront of fighting climate change as a way of giving back to the community. As the Bible says, man should take care of the environment. In Genesis 2:15, God put man in the Garden of Eden to “work it and keep it.”


Gomez-Mejia, L. R., Balkin, D, B., & Cardy, R.L. (2015). managing human resources.    Prentice-Hall.

Hill, C. W. L., & Jones, G. R. (2010). Strategic management theory: An integrated approach.      Boston, MA: Houghton Mifflin.

Kazmi, A., & Kazmi, A. (2008). Strategic management and business policy. New Delhi: Tata      McGraw Hill Education.

Muse, L. A., & Wadsworth, L. L. (2012). An examination of traditional versus non-traditional             benefits. Journal of Managerial Psychology, 27(2), 112-131.           doi:10.1108/02683941211199527

Integrated Business Portfolio-BUS 495

Integrated Business Portfolio-BUS 495


Table of Contents

A. Professional Resume ……………………………………….……………..1 ……………………………………………………………………………….  
B. Outcomes ………………………………………………………………………………………………  
  Outcome 1……………………………………………………………………3  
  Outcome 2 …………………………………………………………………..4  
  Outcome 3 ……………………………………………………………………5  
  Outcome 4 ……………………………………………………………….…6  
  Outcome 5 …………………………………………………………………..7  
  Outcome 6 ………………………………………………………………….8  
  Outcome 7…………………………………………………………………..9  
  Outcome 8 ………………………………………………………………….10  
C. Evidence Used to Support Learning Statements  
  Tab C-1 – The Business Strategy Game Online Simulation – Years 12 and 13

Decisions (example)

Tab C-2 – The Business Strategy Game Online Simulation – Years 18 and 19

Decisions (example)



·         Educational Institution and Degree Dates
·         Educational Institution and Degree Dates
Professional Registration and Certifications
·         List and describe here
·         List and describe here

Business-Related Employment History

·         Employment and description Dates
·          Employment and description Dates


·         Activity and description Dates
·         Activity and description Dates


·           Activity and description ·         Dates
·         Activity and description ·         Dates


·         Activity and description ·         Dates
·         Activity and description ·         Dates


·         Award or honor received ·         Dates
·         Award or honor received ·         Dates


·         List and describe here ·         Dates
·         List and describe here ·         Dates


·         List and describe here ·         Dates
·         List and describe here ·         Dates


Outcome 7

  1. Communicate effectively, orally, and in writing.


  • Written assignments are completed with attention to proper mechanics (grammar, spelling, punctuation) and ideas are presented in an organized, professional manner.
  • Presentations are professional in both their visual construction as well as any accompanying narration.

Learning Statements: Learning Statements:

  • I have developed knowledge on effective oral language instruction. Oral communication is a significant aspect of oral communication. I have gained knowledge on the preparation and presentation of speech as a necessary aspect of oral communication. Oral communication is the most frequently used as a communication medium. Oral communication enables individuals to learn about themselves and others as well through speaking and listening. Oral communication involves thinking, analyzing ideas, developing knowledge, and using listening skills in order to communicate effectively with others. Oral communication is a critical aspect in developing reading and writing skills. Various components can help an individual to develop oral communication. Tese include developing listening and speaking skills, learning vocabulary and conceptual knowledge, and developing auditory memory.
  • I have gained knowledge on using proper mechanics is in writing. Communication is a basic human aspect. It is important to not only students but to the general population. The ability to express logically ideas in writing is a significant aspect in communication. Communication is a critical aspect in the business world. One must learn how to communicate effectively through writing to be successful in the business world. Written communication forms a major component in business. For instance, business communication involves producing reports, writing letters, notices, memoranda, and other written aspects. I have gained knowledge in synthesizing and analyzing the written text. For instance, I can be able to interpret business reports. I have also developed proficiency in utilizing the appropriate writing mechanics of grammar and writing.
  • I have developed practical skills with regard to delivering formal and informal visual presentations to a variety of audience. This is another significant aspect of communication. Presentations can be formal or informal depending on the context in which they are delivered. Presentations enable individuals to explain complex ideas in an easy way. Most informal presentations involve storytelling. While delivering presentations, the speaker needs to make point about three critical aspects. First, the speaker must be aware of the audience. The presentation should be informative to the audience. The presentation message should also be meaningful to the audience.

Evidence Used to Support Learning Statements:

  • Tab C-X, Title, p. x (See tab examples from Outcomes 1 and 2)

International Economics

International Economics

Assessment 1:

Note: This is a group assessment. In any group maximum of 3 members are allowed. In mentioned cases provide a neat diagram to explain your answer. Make sure to label axes properly. Else points will be deducted. The maximum possible points is 40.

Maximum points: 40 points

  1. The following excerpt is from the case study “The Euro in crisis: Decision Time at the European Central Bank”. (distributed in the class)

“……a bailout for Greece would send a signal to other indebted member states that the ECB would step in if private lenders become nervous.”

Answer the following questions with appropriate diagram and using AD-AS model, Money market, aggregate expenditure model, and forex market (as required). For part a, b and c appropriate diagrams are MUST. Else points will be deducted.

  1. When ECB went out for a bail out then what was expected to happen to the interest rate in Greece? (10 points)

At this moment, many European countries were still suffering from the effects of the 2008 economic crises. Greece is one among the many European countries that were in the verge of collapsing considering that it did not have enough funds to run its operations. However, on May 8, 2010, finance ministers of 16 Eurozone nations met in Brussels to discuss on the best way to help Greece out of its current situation back then. After a lengthy discussion, they settled for a bailout. However, this bailout did not come without adverse effect. The decision of the European Central Bank to bailout Greece could have a negative effect on the interest rates in the country. Having a large chunk of money in the economy after the recession would increase the amount in circulation in the economy of Greece and hence lead to an increase in the interest rate of the country (Trumbull, 2010). Having a lot of funds in the circulation would definitely lead to inflation which then would require the banks to raise their interest rates in the attempt to control the inflation in order to feel and see that value of the bailout. Despite the fact that economy cannot run without enough funds, a lot of funds would do more of harm than good. On the same note, if the interest rate of Greece increases, it becomes difficult for people to have access to loans.

  1. Comment on the expected outcome of this policy on behalf of ECB. Provide diagram and detailed explanation on output and prices. (10 points)

Despite the bailout having adverse effects at the European level, the bank itself would be affected in various ways. The primary goal of any bank is to stabilize the prices of goods and services in any country, and the bailout meant that the bank would be going against this principle. Going on with the bailout, meant that the European central bank was not insulated against the political pressure that may be present in the specific countries.  Moreover, considering that the European central bank is not directly associated with any specific country, bailing out Greece would have been seen as if the bank was meddling with political independence of members. As a matter of fact, meddling with Greece bailout, it would have prompted other countries such as Spain which was going through the same situation to stake their claim of needing financial assistance from the bank. In general, we can say that although the bailout would have saved Greece from collapsing economically, it would also have triggered other unwanted and adverse effects particularly from political institutions from other countries.

On the same note, the bailout would lead to an increase in the total output of the country considering that Greece will be in a position to produce more. Having enough cash in the economy helps the country to increase its investment opportunities and chances considering that the white collar sector may not be having enough employment opportunities. However, there is always a negative correlation between prices and outcome. An increase in output leads to a decrease in prices of goods and services. Since the output is high and there are many suppliers of the same product, there is no stiff competition for the available goods and services, and this helps to lower the prices of these commodities (Campello, 2010). On the other hand, when the output is low it raises the prices of the commodities and services since all customers would be fighting for the available goods.

International Economics
International Economics

From the diagram above, we can see the negative correlation between the prices of commodities and the output of the same in Greece after the bailout is effective. If the prices moves from P1 to P2 the output reduces from Y2 to Y1.

  1. c) If government of Greece also increases (assume) the expenditure (expansionary fiscal policy) then what do you think can potentially happen to prices? Provide the relevant diagram and explain your answer.(10 points)

If Greece employs expansionary fiscal policy, the prices will go up. Expansionary fiscal policy involves more government spending which leads to increased aggregate demand. Thus, the chances are that there will be an increase in the amount of money in circulation. This means that most individuals if not all will have money to purchase goods and services at any price thus increase the demand for the available goods and services (Trumbull, 2010). This effect leads to inflation which is the continued and persistent rise in prices of goods and services as a result of higher demand in the economy

higher demand in the economy

An increase in the Greece government expenditure would lead to an increase in the nation income thus an increase in aggregate demand. From the diagram above, it is easy to tell that as the GDP increases from Y1 to Y2 so does the aggregate demand as it moves from AD1 to AD2. This movement in aggregate demand triggers the price to increase from P1 to P2. Considering that citizens have enough money, they will be fighting for the available goods and services regardless of the price.

  1. Overall do you think that bail out of Greece is healthy policy from the perspective of ECB? Answer this one in context of the Case study. ( 5 points)

Yes. The ECB’s main mandate is to protect the value of the euro and extensively the euro itself. Bailing out Greece would have forced the bank to engaged in a fiscal transfer. The formation of the new European Financial Stability Fund (EFSF) demanded support from member states; this support, however, was put to risk by the ECB as its move to bail out Greece risked reducing vital political support for the formation of EFSF.

The main role of the new European Financial Stability Fund is to act as a financial backstop for any Eurozone country that was having troubles accessing the bonds markets. This setup sends a signal to Portugal, Greece, and Spain that the ECB would provide a backstop in case of fiscal crisis.

If Greece were left to default otherwise it would only lead to other low states like Portugal and Spain to follow the same suite, therefore, sending the whole EU spirally into a crisis, the euro would depreciate and thus the overall economic situation of the Eurozone would worsen further. Setting up financial stability through the bail out of Greece and the formation of European Financial Stability Fund is a long-term solution to such contagion. Therefore, the euro value would be protected, and the euro itself defended through the bailout of Greece. The protection of the Euro value is the main objective of the European Central Bank thus bailout of Greece is a healthy policy since it aids the ECB in stabilizing the euro value.

  1. Explain why a group of economist thinks that a common currency like Euro for the region is not a good idea. Restrict your answer to the concepts discussed in the class and the case Study. Page limit is one page. (5 points)

The Euro like any other new idea being brought into existences suffered a number of criticisms that it was not a good idea. Economists such as Milton Friedman, Henry Kaufman, and Martin Feldstein warned that the euro as a single currency could trigger a civil war in Europe. Other Economists emphasized on the risks of centralizing monetary policy to the common decision-maker ECB while fiscal authority was controlled by the member states. These economists alerted that individual states had an incentive to over-stimulate their economies through fiscal imprudence because the benefits of fiscal stimulus were local and the costs of monetary tightening were felt across Europe (Trumbull, 2010). This act would only weigh the ECB to charge higher interest rates than might otherwise be necessary to meet their inflation targets, resulting in slower economic growth across the Eurozone.


Campello, M. G. (2010). The real effects of financial constraints: Evidence from a financial crisis. Journal of Financial Economics, 97(3),, 470-487.

Trumbull, J. G. (2010). The Euro in Crisis: Decision Time at the European Central Bank.


Design with UML

Nvidia company valuation and Cost of Capital Estimation

Nvidia company valuation and Cost of Capital Estimation


NVIDIA Corporation is an American based technology company. It basically designs graphics processing units, gaming among other developed mobile computing systems. Established in the 1990s with a startup capital of $40,000 the company has recent financial reported growth across all segments. On this report, both theoretical and practical cost of capital estimation and company valuation are discussed. Exhibits, Appendix for this report and their sources are also presented for ease understanding.


  • Introduction to theory of cost of capital
  • Models used to estimate cost of capital
  • Data used in models for cost of capital estimation and its application to valuation.

The term Cost of capital can be explained from two perspectives. To the Investors, it is the rate of return required by the market to attract funds for investment. Primarily on the company capital structure, it includes the following three components; Long-term debt, preferred equity and common equity. Key characteristics of cost of capital are;

  • It is associated to the market.
  • Investment driven
  • Metrics are based on nominal terms
  • Based on market value and not book value

Case1. Sales growth forecast and terminal growth rate after terminal year.

Sale forecasting means projection of sales performance at a terminal period. This is affected by both external and internal factors within the industry and the company. Methods of performing a sale forecasting Qualitative and Quantitative. Quantitative forecasting applies historical data and make assumption on pattern to forecast the future. Sales forecast is useful to the investors in making decision regarding investment. We first gather data of sale values for previous years. For this case, we shall use a Time series model moving average method. This take average of the sales over set number of years. The formula below is applied;

Sales growth Forecast;

Forecasting sales involves the following steps for an Enterprise;

  1. Getting the Historical data and the current year sales
  2. The Income Statement starts with Current year sales always
  3. Forecasting the sales growth with be given by

Sales= Previous year’s sales * (1+ growth)

The terminal growth rate is a steady rate at which a company expected free cash flow are assumed to grow at. The terminal growth rate formula is given as follows,

Where, .

Weighted average cost of capital is the blended cost of capital across all sources such as preferred shares, common shares, and debts. It is calculated as follows


  • Start with enterprise cash flows derived earlier.
  • Compute the growth rate in enterprise cash flows.
  • Input: Enterprise cost of capital (aka wacc) is assumed constant for all years.
  • Make sure that the enterprise cash flows reach terminal growth before computing terminal value. Terminal value is computed at the end of Year 5 because the enterprise cash flows reach terminal growth only after that year. The formula is C5*(1+g)/(wacc-g) or C6/(wacc – g).
  • Enterprise value = PV of enterprise cash flows until Year 5 + PV of terminal value
  • Historical data: Initial ending net financial liabilities.
  • Subtract net financial liabilities.
  • Equity value = Enterprise value – Net financial liabilities

Inferring cost of equity

If one used firm’s cost of equity to derive wacc, then this step is indeed redundant. However, in many instances, we assume that the firm’s wacc is the same as its competitors, or we use a subjective estimate of wacc. In these cases, it is useful to know the cost of equity implied by wacc and leverage.

See the equation for cost of equity (re) specified earlier. re generally varies across time if leverage based on market values changes. Even if NFL/book value of equity is kept constant, as is the case in this model, the ratio of NFL to market value of equity changes over time. Thus, re varies across time. Therefore, you cannot discount distributions to shareholders at the current re to derive the current equity value.

Bond Information of NVidia Corporation

NVidia Corporation issued an International bond valued at USD 1,000M. the bond is expected to mature in the year 2021 with a coupon rate of 2.2%. The bond was sold at a price of 99.802%. The Bookrunner were Goldman sachs, Morgan Stanley and Wells Fargo. A bond issue is meant to help raise finance by the issuer. For a bond, it is redeemable after a period of time. To estimate the yield the firm may have to provide the investors while making a new issue.

To get the current market value of NVidia corporation Bond issue (US67066GAD60).

The market value of a bond is like the present value of all future cash flows. Therefore the face value is needed, the coupon rate, maturity period and market interest rate.

A bond is therefore a form of debt that an investor expects periodical interest payments that are based on a stated coupon rate and return the original principal at maturity.  Face value is $1,000M, Maturity 5 years, Coupon rate 2.2% , assumed 9%.

The following formula applied

PV( bond) =   =

To find the yield on a company’s recently issued long term bonds, given it has bonds outstanding or it can be can be found by rating the bond also. This can also be done by assessing the yield on other bonds with a similar rating and in the same industry.

The yield rd is the coupon rate that the company will have to set on a new bond.


Other Metrics involved in cost of capital;

Cost of preffered stock. This is the rate of investment return by holders of a company’s preferred stock. Calculation involves diving the annual dividend payment on the preferred stock by the preferred stock’s current market price.

Par value $100, Dividend yield = 10%, issue price = $116.95, Flotation cost = 5%


Methods of determining the Cost of equity

The existing common stock also called retained earning can be calculated using below methods.

This can be done using three known methods;

  • Capital Asset pricing method. This model describes the relationship between the expected return and the risk of a security. The CAPM shows that the return on a security is equal to risk-free return together with a risk premium.

CAPM formula and calculation,

Where Ra is the expected return on a security, Rrf is the free rate, Ba is the Beta of the security and Rm is the expected return on the market.

Risk premium is given by subtracting

  • Discounted cash flow method. When investors expect returns in form of dividends that can be done quarterly or half yearly. The discounted cash flow model for measuring the cost of retained earnings is given by

G is the growth rate of the stock

  • Own-bond- yield plus Judgmental risk premium

This is given by


For this case using data available for the company NVidia corporation it is easy to determine the Cost of equity using both methods.

Cash Flows Statement NVidia Corporation

Cash flow statement equation is given by;

Operating Income is got by subtracting Operating revenues from Operating expenses

NFE is obtained by subtracting financing income from financing expense

  1. Method 1.

For this to be possible, reformulated income statements and balance sheets for a firm must be done. With reformulated statements, any of Method 1 or Method 2 of calculating free cash flow can be done.

NVidia corporation: Calculation of Free Cash Flow for 2016 (in Millions)

Method 1:

Operating income           2016

Net operating assets       2016

Net operating assets       2015


Free cash flow                    2016




$ 16,072





We have the Cash flow statement for year 2010 given. To calculate the Free cash flow for year 2016 we take Cash from operating activities subtract the capital expenditure.

Total Operating activities $16,072M

-Capital Expenditure            $ 3,067M

-Dividend to shareholders $5,458M

Free Cash Flow                         $7,547M


The numbers differ. Method 1 above value is different from the value obtained under ordinary method.

  1. Method 2. Calculate for free cash flow.

For this the calculation will involve the sum of NFE for year 2016, the change in NFA and the dividend.

We take the NFA for year 2015 and 2014. The dividend is on the Statement of income.


NVidia Corporation: Calculation of Free Cash Flow for 2016 (in Millions)

Method 2: C – I = NFE – DNFO + d 
  Net financial expenses    2016

Net financial obligations           2016

Net financial obligations    2014


Net dividend                   2016


Free cash flow                 2016












The two methods should give the same result provided income is a comprehensive income.  Free cash flow appears to be different under the two methods. The difference is occasioned by the fact that we cannot reconstruct a deferred compensation asset, an operating asset. The Free cash flow calculation is dependent on income and asset aspects which is not the issue for operations.

Method 2 offers the accurate calculation.

  • Calculate the net payout to shareholders from the cash flow statement. (Make remarks)

To achieve this. We get the free cash flow value.  The Free Cash Flow value is then multiplied by the dividend payout ratio.

  • What is the relevance of the supplemental disclosure at the bottom of the cash flow statement?

This exists so that adjustments made to the cash flow statement are known. There are three categories of this. Cash paid for interest and income taxes. The Reconciliation Schedule and Non-cash investing and Financing activities.

The return on common equity

The return on common equity
The return on common equity

The 2016 Chevrolet Camaro

Brief Overview of the Product

  • The 2016 Chevrolet Camaro is classified as a pony car.
  • The new Camaro features a lighter architecture than previous designs.
  • It has a more athletic shape that creates prominence on the road.

What the modes means to you

  • Gives you the freedom to tailor the ride quality.
  • A normal car which can transform into a sports car with only a tap of the drive mode.
  • You selects mode depending on road conditions or preferences.
  • The “sports” mode is suitable for motorsport lovers.

Why buy a Camaro?

  • Athletic appearance.
  • Great agility on roads.
  • Responsive breaking.
  • Great speed & maneuverability.

It’s always a Camaro

vWith the four drive modes available, the following are guaranteed:

  • Your comfort.
  • Freedom of choice.
  • Guaranteed happiness.

The 2016 Chevrolet Camaro Creative Development


  1. Creative Brief

Who’s your product?

The 2016 Chevrolet Camaro is in the class of pony cars, with a characteristic sporty image and high performance capabilities. The 2016 Chevrolet Camaro has been reengineered and redesigned to fit consumers’ tastes and preferences. The brand features a sophisticated design, lighter architecture, modern technologies, and an athletic shape that is hard to ignore on the road.

Why your product?

The 2016 Chevrolet Camaro caters to the needs of consumers in a number of ways. The lighter architecture significantly improves features such as breaking and attack on corners, which is a necessity for motorsport racing. The lighter architecture also provides the Chevrolet with nimble performance capabilities, which is a plus in motorsport racing. The pony characteristics of the 2016 Chevrolet Camaro presents the model to the consumers as a brand designed purely for motorsport racing.

Describe or develop the emotional and rational aspects of your product.

The 2016 Chevrolet Camaro has several emotional aspects. The emotional aspects of the brand include presence of rear quarter panels and a fastback profile, which gives the image of a pony car (Fleming, 2016). These features are highly regarded by motorsport lovers although in reality, they do not add to the performance of the car. The rational aspects of the product revolve around the smaller and lighter architecture, which appeals more to motorsport lovers. The tighter proportions of the brand mean that it is more responsive to breaking, can accelerate faster, and has high maneuverability around corners. The 2016 Chevrolet Camaro has shed over 390 pounds comparing to its predecessor. It churns out 455 HP, which is the most powerful of the Chevrolet Camaro brands. As such, it is capable of accelerating from 0 – 60 MPH in 4.0 seconds (General Motors, 2016).

What’s you product about?

The 2016 Chevrolet Camaro is a pony car with a tighter body and lighter framework that makes it one of the most agile racing cars in the market. The brand positioning emphasizes great performance capabilities combined with agile road handling due to its tighter proportions.

What else is about your product?

One of the concept that needs addressing in terms of the demand shifters involves consumers’ tastes and preferences. Factors such as advertising and current fashions influence consumers’ tastes and preferences. Another critical factor entails high competition. Chevrolet Camaro faces stiff competition from Ford Mustang.

Where is your product needed/demanded?

The 2016 Chevrolet Camaro does not have a specific region where there is demand for the brand. The brand has demand in both the U.S. and from overseas countries.

When is it needed/demanded?

The 2016 Chevrolet Camaro has an even demand throughout the year. This is because its demand is unaffected by seasonal factors such as climate or sporting events.

How’s it used?

The 2016 Chevrolet Camaro has an athletic appearance and thus used as a pony car (General Motors, 2016b). Majority of the brand consumers are thrilled by cars with great agility on roads and sporty characteristics such as great speed, maneuverability, and responsive breaking.

Does the average consumer have specific wants your ad should address?

The ad should address the brand’s performance capabilities such as breaking, acceleration, and horsepower. The ad should address these rational aspects. The ad should also address emotional aspects such as the brand’s design.

  1. How the benefits are presented in your new advertisement/promotion

Objective statement

The main objective of the promotion is to ensure that consumers learn about the four drive modes that the new Chevrolet Camaro offers to drivers. The drive mode selected alters the quality of the ride basing on the mode selected.

Support statement.

The Sport, Track, Snow/Ice and Touring modes enables drivers to change the quality of the ride between comfort and performance depending on the terrain or driver needs.

Support statement part two.

The 2016 Chevrolet Camaro has a drive mode selector that enables a driver to customize their driving experience. The drive mode selected alters the look, exhaust sound, and the general experience of the car to offer unique driving experiences.

Support statement part three

One of the demand shifters is consumers’ tastes and preferences. Consumers’ tastes and preferences vary depending on a number of factors such as prevailing fashion or advertisements. With regard to Chevrolet Camaro, consumers are drawn by new designs such as the four drive modes that enhance a driver’s experience. Demographic factors also influence the demand level of a product. Increase in per capita income increases the disposable income among consumers, thus they are able to demand even highly priced products such as Chevrolet Camaro. Economic factors such as consumer spending trends, inflation rates, cost of borrowing, and others affect demand for vehicles. When the economic factors are unfavorable, the demand for products such as Chevrolet Camaro reduces.

Natural factors have little impact on the demand for Camaro brand. Technological factors may affect the demand for Chevrolet Camaro. Application of modern technology is critical in attracting young buyers who are the main consumers of the vehicle brand. Technological innovations have enabled General Motors to include the four drive modes in order to enhance driver experience. The political factors may reduce the demand of the Camaro. The social/cultural factors have no impact on the Camaro brand. This is because the brand transcends across cultures. The competition is an important demand factor to consider. The actions of competitors have a direct impact on the demand of a product. Chevrolet Camaro is able to remain ahead of competition through innovations such as the four drive modes. Substitute products have little impact on the demand for Camaro brand since it is a leisure product.

Tone statement

The new 2016 Chevrolet Camaro is a masterpiece of design with a light architecture and a variety of drive modes that offers you the best driving experience you will ever have.

Brand statement

The Chevrolet Camaro brand offers consumers a sophisticated design with a lighter architecture and a customizable drive mode selector that lets one change the drive mode to suit the different terrain requirements or driver requirements.

  1. Your Advertisement/Promotion Message Strategy

Describe the overall creative approach

The overall creative approach involves emotional advertising. Emotional advertising seeks to appeal to the emotions and feelings of the consumers (Heath, 2012). Emotional advertising aims at making the consumer purchase a product based on perceive feelings concerning the product. Emotional advertising of the Camaro brand will aim at associating the 2016 Chevrolet Camaro with comfort and happiness. As a result, customers will likely associate the Camaro brand with comfort and happiness and thus purchase the product.

What do you want your advertisement/promotion to say?

The promotional message will emphasize on comfort and happiness that is derived from driving a Chevrolet Camaro with four different modes. The message will emphasize on the four modes, which include Sport, Snow/Ice, Tour and Track and the benefits associated with each of the modes. The promotional message will feature the capabilities of the 2016 Chevrolet Camaro to offer the driver a unique experience even in the face of challenging terrain such as in zero-temperature conditions.


The ad will feature a lean Chevrolet Camaro with appealing colors. The ad will screen the Chevrolet Camaro driving in icy conditions while able to maintain traction. The Chevrolet Camaro’s body will partially be covered in ice, indicating the snowy conditions.


The most powerful IMC Promotional Mix component is advertising in the mass media. The mass media has wider coverage and thus a wider reach for the audience. Advertising through the mass media enables the advertiser to reach easily and in a quick way a large number of target audience. Television is visually appealing and can run the advertisements showing the different experiences drivers get when they use the various drive modes.

Internet and Social Media

IMC Mix components include the foundation, brand focus, integration tools, promotional tools, corporate culture, consumer experience, and communication tools (Burnett, 2007).  The foundation stage refers to a close examination of the product and the target market. The brand focus is the corporate identity of the brand. Integration tools involve the application of special software such as customer relationship management (CRM) software to assess the effectiveness of different integrated marketing communication tools. Promotional tools include various promotional tools such as direct selling, personal selling, and trade promotions (Smith & Schultz, 2005). Corporate culture represents the work culture associated with the organization. Consumer experience relates to the various feelings and perceptions of consumers who are using the product. Lastly, communication tools involve the means by which the company passes information to consumers.


Burnett, J. J. (2007). Nonprofit marketing best practices. Hoboken, NJ [u.a.: Wiley.

Fleming, C. (2016, March 18). 2016 Chevrolet Camaro turns up the heat during a drive to Death             Valley. Los Angeles Times.

General Motors (GM). (2016). 2016 Camaro. Retrieved from     camaro-sports-car.html

General Motors (GM). (2016b). Our Company. Retrieved from

Heath, R. (2012). Seducing the subconscious: The psychology of emotional influence in    advertising. Chichester, West Sussex: Wiley.

Smith, S., & Schultz, D. E. (2005). How to sell more stuff: Promotional marketing that really      works. Chicago: Dearborn Trade Pub.


Chevrolet Camaro Market Segmentation

Barbados Global Business Cultural Analysis

Barbados Global Business Cultural Analysis


Barbados is part of the eastern Caribbean island and one of the most developed countries situated in the Caribbean region. The country maintains an undiversified export base and production. It mainly imports the raw materials required for conversion to final output. Some of the final product is consumed locally while surplus is exported. Over the last decade, the region is experiencing an economic hardship owing to the global economic meltdown. Global business relates to the transactions conducted across borders. In line with this, the global business cultural analysis focuses on the business culture of a country and its overall impact across borders. This paper investigates the global business culture with regard to Barbados region. The research will investigate 24 scholarly sources detailing the global business cultural analysis within the region as well as outside regions.

Lombardo, G. A. (2011). Cross‐cultural challenges for a global maritime enterprise. Cross           Cultural Management: An International Journal, Vol. 18 Iss: 4, pp.485 – 498. Retrieved     from

The author examines the cross-cultural issues that emerge when conducting international business and management courses. The purpose of this research is to provide students    with a hypothetical case study that will enable them to conduct their own realistic          analysis of business systems in various parts of the world. The research indicates that     cross-cultural conditions are important factors in the global business cultural analysis.          The implication of this research is that there exist significant differences between classroom exercises that students are accustomed to      and the business practices in the real world. The normal textbook readings that students are used to provide limited cross-       cultural exposure to students, a fact that becomes apparent when they begin looking for            jobs. The research provides students with practical experiences that enable them to      apply the concept or theories learned in classroom interactions. The limitations of this             study lie in the inherent differences that exist between the classroom experiences and        the real world experiences. Its hypothetical nature also makes it unable to yield concrete    and scientifically proven results.

Alleyne, P. (2016). The influence of organisational commitment and corporate ethical values on non-public accountants’ whistle-blowing intentions in Barbados. Journal of Applied    Accounting Research, Vol. 17 Iss: 2, pp.190 – 210. Retrieved from           0118

Alleyne (2016) examines the impact of strong corporate ethical values and the       organizational             commitment to the willingness of private sector accountants to act as          whistle-blowers within the Barbados region. The study finds a strong link between        corporate ethical values and organizational commitment with whistle-blowing intentions,           both within the internal and external sources. This study is important since it helps inform       the role of strong organizational cultures in changing the global business culture. There exists a strong link between the organizational culture and the global culture exhibited by             the organization in its interaction with multinational corporations. The study provides an objective view of the role played by corporate ethical values and a strong       organizational culture by obtaining data from 236 private sector accountants through use of   questionnaires. The limitation of this study lies in the fact that its findings are not           generalizable across other professions. In addition, the quantitative survey             method            applied does not allow for investigation of the feelings or perceptions of those sampled.

Rao, A., & Sedlaczek, Y. (2012). Calypso in the Caribbean: a musical metaphor for Barbados.             International Journal of Cross Cultural Management, 12(3): 315 – 327. Retrieved from   

The duo investigates cultural diversity within the Caribbean region and its impact on        management at the international levels. The duo investigates the local culture of the       Caribbean region from a musical point of view. Barbados’s inhabitants mainly comprise        of individuals whose origins are traceable to Africa, along other inhabitants distributed     within the Caribbean   region. The research asserts that the socialization of Barbados       inclines them to follow authority. The Barbados has a high “power distance”, which is           described as the relative degree to which society members tolerate unequal power structures. The research aims at understanding basic workplace behaviors such as power        distance, gender differences, materialism, assertiveness, and the relationships between         people from a cultural lens. As the integration of Barbados into the global business        community increases, global business managers need a deeper insight of the various   cultural aspects defining the local population. The limitation of this method is that it   mainly relies on interpretation of culture through music, while neglecting other methods.

Banutu-Gomez, M., & Rohrer, W. G. (2014). The role of culture, language, and ethics in global   business. European Scientific Journal. Retrieved from   

The research looks at the role of ethics, culture, and language in relation to the global       business. The research notes that there is dire need for businesses to learn how to work         together to survive the harsh economic environment. Businesses must learn the culture,     language, and ethics of the countries they intend to take their investments. The researchers collected data through examination of primary sources as well as a vast   collection of secondary sources. These sources enabled the duo to obtain an in-depth             knowledge of how language, culture and ethics affect international business ventures.       The literature review for the research strongly indicated that the language, culture and ethics in a particular country significantly affect how businesses interact at a global scale.          The study brings to light the critical importance of awareness of cultural differences as a             critical success factor for global businesses. The study, however, does not provide     empirical evidence to support its stand on the impact of culture.

Howard, M., & Alleyne, P. (2004). Understanding tax reform issues in barbados*.Journal of        Eastern Caribbean Studies, 29(3), 38-64. Retrieved from      ew/216624376?accountid=12085

This paper investigates issues relating to tax reforms in the Barbados region. The paper    analyzes the impacts of tax reforms in small countries such as Barbados with regard to improving global business. The study finds that the tax reform policy implemented in           Barbados significantly improved the economy. Tax reforms touched on key mode of             operation whereby the country shifted to an indirect tax system through the application of       value added tax. The system of tax in place is critical in the global business environment.   The duo analyzes optimality of the tax system Vis a Vis supply side efficiency.  Supply-   side tax policies generally examine the impacts of progressive tax rates on items such as          savings or investments. The policies also look at the need to implement appropriate tax          rates that enhance economic growth rather than subdue growth. The article provides a            concise overview of how the tax system in a country influences global business in      Barbados. The study helps to inform readers of the critical role the tax system plays in    influencing global business. The article provides empirical data, which helps strengthen          the arguments.

Byron, J. (2007). STRATEGIC REPOSITIONING: FOREIGN POLICY SHIFTS IN        BARBADOS AND TRINIDAD AND TOBAGO, 1990 – 2000. Social and Economic   Studies, 56(1/2), 209-239. Retrieved from

This study analyzes the impact of changes in foreign policy in Barbados and Trinidad       region from 1990 to 2000. Liberalization of the global economy had significant impacts           to international trade in different countries. The study notes that the impacts of         globalization were strongest in small developing countries that maintained open           economies. With the advent of globalization, these countries realized the need to            restructure their foreign policy in order to fit in a more dynamic global business             environment. The paper conducts a comprehensive examination of existing literature on   the foreign policy-making process, noting that due to its close proximity with the United         States, Barbados experiences a significant influence from the U.S. in its policy          development process. Since the U.S. is a world superpower, its influence is even higher          over the Caribbean region owing to the close proximity. As such, most of Barbados’    policies reflect those of the United States. The study indicates that small countries such as         Barbados are still in a position to benefit from globalization, especially when such             countries formulate policies that protect the local industries.

Elliott, D. R. (2007). Caribbean regionalism and the expectations of increased trade: insights        from a time-series gravity model. Journal of International Trade & Economic   Development, 16(1): 117-136. Retrieved from            -2081-4271-8300-36feebeeec62%40sessionmgr104&vid=2&hid=115

This study uses a time-series gravity model to examine the impacts of integration in the    economies of three Caribbean countries: Jamaica, Barbados, and Trinidad. The goal of           the research is to establish whether there are any significant benefits arising from         economic integrations. Surprisingly, the study concludes that regional integration does        not necessarily promote trade flows. In fact, in some situations, economic integrations             results to a decline in trade flows between countries. The study utilizes different             variations of the time-series gravity model in order to gain a clear understanding of           natural and induced trade between countries. The study utilizes empirical analysis in    examining the impact of economic integration in the three countries. As such, the study             produces robust results that inform the analysis. The study outlines the main challenge           that countries face in the increasingly globalized world, which concerns achieving high         output in the face of intense competition. The application of gravity models is effective in      this case since the models are suitable for developing countries or those in transition.

Kolstad, I., & Villanger, E. (2008). Foreign direct investment in the Caribbean. Development       Policy Review, 26(1): 79 – 89. Retrieved from               7679.2008.00399.x/epdf

This study examines the attractiveness of the Caribbean region to foreign direct     investment. Foreign direct investment is significant in promoting the economic growth and development of an economy. The duo conducts an econometric analysis that           indicates that the Caribbean region receives relatively high foreign direct inflows comparing with other select regions. The study indicates that political instability has a             multidimensional impact on foreign direct investment (FDI) inflows in a region. For         instance, the study highlights the absence of government regulation as the major factor contributing towards the high inflows of FDI in the Caribbean region. This study helps to inform the Caribbean governments of the steps they can take in order to increase the flow     of foreign direct investment in the region. This study is important in this research since it           helps in analyzing the most effective measures that governments are taking to attract FDI.      The culture of a country with regard to the measures it uses to attract FDI greatly determines its economic prosperity.

Bernal-Verdugo, L. E., Furceri, D., & Guillaume, D. (2012). Labor market flexibility and             unemployment: new empirical evidence of static and dynamic effects. Comparative          Economic Studies, 54(2), 251. Retrieved from http://p2048-            6&sid=summon&asid=d8cf4059403925e95301f7cf0b2a0557

Bernal-Verdugo, Furceri, & Guillaume (2012) examine the relationship that exists            between unemployment outcomes and labor market flexibility in different countries,           including Barbados. The study utilizes a sample of 97 countries, collecting data between       the years 1985 and 2008. Most of empirical data collected by researchers concentrates on        single indicators with regard to labor market institutions. Contrary to this, the research      examines multiple indicators related to the labor market flexibility. The broad sample collected spanning 97 countries enables the researchers to identify or single out             unobserved country-specific characteristics, which could in one way or another influence the labor market performance. Empirical data gathered was reviewed using correlation         matrix and other statistical measures. The results indicate that increased labor market   flexibility can lead to a decline in unemployment. Previous researches concur with the   above conclusion with regard to the labor market flexibility and job creation. Rigidity in    labor market institutions can hinder job creation and is often associated with increased             unemployment levels in an economy.

Lewis-Bynoe, D., Griffith, J., & Moore, W. (2002). Trade liberalization and the manufacturing    sector: the case of the small developing country. Contemporary Economic Policy, 20(3):        272-280.               |A89025388&v=2.1&it=r&sid=summon&userGroup=vic_liberty&authCount=1

This article examines the impact of trade liberalization in the Caribbean region with a       bias towards the manufacturing sector. This article compares with the study by Elliott    (2007) that investigates the effect of economic integration in the Caribbean region.      Lewis-Bynoe, Griffith, & Moore (2002) find sufficient evidence indicating that trade             liberalization may not yield any benefits to the economics involved. In particular, the three assert that trade liberalization is a catalyst for unhealthy price competition among     the industries, which may lead to collapse of the industries within the Barbados region.           The article asserts that industries should aim at improving their efficiency by   reorganizing their production processes. The study utilizes an import demand function to examine the effects of trade liberalization on the demand elasticity relating to imported             manufactured goods. The study utilizes firm-level data, meaning that the conclusions     reached support various empirical studies. This empirical research provides a firm             backing regarding the negative impacts of trade liberalization on the economies of            developing countries such as Barbados.

Starr-Glass, D. (2014). Internalizing cross-cultural sensitivity: reflective journals of migrant         students. Journal of International Education in Business, 7(1): 31-46. Retrieved from   

This study examines the experiences of migrant students in cross-cultural education          setups. The main point reflected throughout the study is that cross-cultural students      harbor deep knowledge and experiences that they ought to share with those who have not          had opportunities to experience diverse cultural settings. The study design involved participants drawn from multicultural settings. Each of the participant received a reflective journal that they maintained throughout the semester. The participants filled out       their most defining cross-cultural experiences in the reflective journals. The journal’s       main aim was to increase the cross-cultural students’ awareness of their cultural        adaptation problems that they were facing. This is mainly through reflecting on the        various issues that confront them. The importance of this study is that it examines the    critical issue of cultural sensitivity. The study results may be applicable to cross-cultural students wishing to study in places such as Barbados. The study can also help             multinational corporations understand how cultural diversity may affect their employees.

Janelle, J. (2014). Culture, community, consciousness: the Caribbean sporting diaspora.    International Review for the Sociology of Sport, 49(6): 669-687. Retrieved from   

This article looks at the capability of sports to strengthen social relationships and kinships across borders. The article notes that the inhabitants of the Caribbean region have a bias towards recreational cricket. Recreational cricket has for a long time acted as the source of cohesion and as a symbol of the region’s unity. The findings indicate that most groups of Afro-Caribbean descent perpetuate recreational cricket in different regions as a way of cultural production. Recreational cricket thus enables these groups to maintain cross-border interpersonal networks. Cricket matches enables the players and fans to interact and to regenerate the diasporic attachments or consciousness. The article is useful since it enables readers to understand the importance of sports as a way of expressing a people’s culture. In line with this, corporations can easily integrate into the local culture by promoting sporting activities that the bulk of people take pride. The article identifies globalization as key to understanding the economic and social flows in the macro-economy.

Glazier, S. (2011). Barbados. In W. Roof & M. Juergensmeyer, Encyclopedia of global religions. Thousand Oaks, CA: Sage Publications. Retrieved from

Glazier (2011) examines the culture and religious background of Barbadians. The study looks at Barbados while classifying the residents as per their race and origin. Barbados has a unique history since it is the only of Caribbean countries under British rule during the colonial period. In 1966, the country gained independence from British rule. The country has a high population density of about 1,570 persons per square mile. About 90 percent of the population in Barbados has an African origin. These came into this area during the days of slave trade. European Whites account for about 4 percent of the entire population. Asians and other groups such as Latin Americans account for about 6 percent of the population. Barbadians value religion and as such becomes a significant aspect of their culture. Majority of the inhabitants are Christians, and most of them Protestants. It is important to explore the religion and ethnic background of the inhabitants since these are critical aspects when discussing global business cultural analysis.

Becker, G., Philipson, T., & Soares, R. (2005). The Quantity and Quality of Life and the Evolution of World Inequality. The American Economic Review, 95(1), 277-291.           Retrieved from

The authors investigate the concept of inequality in developing regions such as Barbados. The authors analyze GDP per capita measures and help readers to understand the implications of these measures in different countries. The study goes further to analyze the non-material items that significantly determine the quality of life in different countries. The authors note that for instance, economic welfare is not only the function of material welfare, but also the quantity and quality of life of the population. The study draws data from 96 countries between 1960 and 2000. The large sample size and the longevity of the data collection period increase the accuracy of the results of this study. The large sample size makes it possible to generalize data in different regions. This study is important since welfare indicators are significant measures of the performance of the economy. Additionally, the study of global business cultural analysis touches on the welfare measures such as GDP, mortality rates, life expectancy, and others.

Denis, A. B. (2003). Globalization, women and (in)equity in the south: Constraint and resistance in Barbados. International Sociology, 18(3): 491-512. Retrieved from   

This article examines contemporary globalization and its influence to the inequities experienced by women in the Barbados region. The article first examines the impact of modern globalization to the political landscape of Barbados. The major aim of the article is to analyze how Barbadian women experience and benefit from various aspects of globalization during their daily economic activities that they engage. The article also examines the impact of different categorical groupings such as race, social class, and ethnicity interrelates with gender to determine women’s position in society. The study traces women’s role in production in the Barbados region from the early 1900s. In order to provide concrete results, the article conducts a literature analysis of previous studies focusing on the issue of women and development in the region. The research is helpful since it helps examine the role of women in economic development of the region. It is important to examine the role of women in economic development while conducting a global business cultural analysis.

Clair, M., Henry, P. B., & Hlatshwayo, S. (2013). Two tales of entrepreneurship: Barbados,         jamaica, and the 1973 oil price Shock1. Proceedings of the American Philosophical       Society, 157(1), 32-57. Retrieved from            ew/1459215424?accountid=12085

This study examines the role of favorable public policy in pushing for economic development of a country. The study examines the role of public policy by contrasting the economic growth of Barbados region to that of Jamaica from 1961 to 2011. The aim of this study is to identify how different policies have shaped each of the economies since the mid-1950s. The study conducts a quantitative historical analysis to examine the interplay of factors and policies that have shaped the economies of the two countries. The results indicate that Barbados region has experienced robust growth in GDP owing to favorable public policies that support entrepreneurship and trade. On the other hand, Jamaica’s GDP has largely stagnated since 1961 owing to “anti-business policies” that the government has enacted over time. It is important to analyze the role played by appropriate public policies in the development of less developed nations. This article emphasizes the important role public policy plays in assisting the development of trade and entrepreneurship in economies.

Millar, M., & Devonish, D. (2009). Attitudes, savings choices, level of knowledge and     investment preferences of employees toward pensions and retirement planning: survey            evidence from Barbados. Global Pension Perspectives, 14(4): 299- 317. Retrieved from   

This study examines the attitudes of employees and their knowledge towards pension and retirement planning. The study makes a comparative analysis of employees’ attitudes and knowledge between Barbados region and the United Kingdom. The main purpose of the article is to investigate the financial burden that most countries experience especially due to the high pressure from pension funds that take a huge chunk of their national budgets. Many countries have realized the high financial costs associated with funding an ever-increasing pension fund due to the rising number of individuals reaching the retirement age. The study bridges the information gap that exists with regard to pension literature in the Barbados region. Employers in the Barbados region are supposed to provide employees with a default pension plan outlined by the state government. The study utilizes data from 134 employees drawn from both the private and public sectors. The sample size was not large enough hence it could may be difficult to generalize the research findings.

Craigwell, R., & Jackman, M. (2014). Does government employment crowd out private sector     employment in SIDS? The case of Barbados. The Journal of Developing Areas, 48(4): 1 –          12. Retrieved from

The duo investigates the impacts of government involvement in the labor sector with regard to Barbados region. The main aim of the article is to investigate whether government employment of the population produces crowding out effects to the private sector in terms of employment. The article uses Markov-switching error correction model to measure the influence caused by government employment to Barbados’ labor market. The findings indicate that government involvement in the employment sector causes marginal crowding out effect to private firms in the labor market. The study utilizes data collected from 1976 to 2009 on an annual basis. Additional data used for control variables drawn from reputable sources as United Nations National Accounts and World Bank World Development Indicators. The net impact of government involvement towards unemployment is however, negative. It is important to evaluate the impact of public employment programs to the private sector. This enables multinational corporations to be better placed in terms of decision-making and choice of investments.

Addington, C. (2004). Sectoral labor employment in a Caribbean economy: the case of     Barbados. The Review of Black Political Economy. Retrieved from               1A8A95C4A9FPQ/1?accountid=12085

Addington (2004) explores employment in the Barbados region through a multi-sectorial analysis. The article articulates the findings of Craigwell & Jackman (2014) concerning government involvement in labor employment. The article indicates that government involvement in the labor sector has significant impacts to labor availability especially in the sugar sector. The article looks at the growth of the various sectors of the economy by examining the output levels, growth of real wages and the employment trends by sector. The findings show that tourism is the most robust sector of the economy with real wages of 22.2 percent, output at 96 percent and employment at 37.5 percent. The distribution sector comes second with a 21.4 percent output level and 37.5 percent employment level. The agricultural sector records the lowest output and employment levels. This study can help inform multinational corporations on the profitable sectors for investment. The study is important since it helps analyze how different sectors of the economy are performing.

Suzanne, B. (2008). Policing the transnational: cultural policy and the “Traveling Cultures” of     the Anglophone Caribbean. A Journal of the Caribbean and its Diaspora, 11(3): 70 – 99.       Retrieved from     origsite=summon

This study looks at the complexities emerging from the presence of colonialism and slavery in the Caribbean region. The study notes that since the region received independence from colonial rule, a number of cultural policies have been formulated in an effort to resolve the complexities resulting from colonialism and slavery. Issues to do with culture feature eminently in the Caribbean region development agenda. The major aim of this study is to examine the negative impacts resulting from slavery and colonialism, and to evaluate the contemporary cultural developments that afflict the region. The research notes that inadequate financial resources are a major hindrance towards implementing cultural policies in the entire region. This study offers readers a unique insight into the role of cultural policies during the colonial period as well as the post-independent Caribbean. The study is useful in this research since it shows the role of cultural policies in fostering unity and development of a region.

Bernard, A., & Fernandez, A. D. (2012). Yoruba proverbs as cultural metaphor for understanding             management in the Caribbean. International Journal of Cross Cultural Management,        12(3): 329 – 338. Retrieved from

This study examines how cross-cultural awareness and understanding is built by using cultural metaphors. The globalized world requires that businesses develop a multi-cultural expertise in order to enhance the social, economic and political affairs. The aim of this study is to develop a conceptual framework that shows how managers can use cultural metaphor to develop a cultural understanding in the workplace. The study is similar to Rao & Sedlaczek (2012) study, which seeks to gain a cultural understanding through music. Music and metaphorical aspects forms a close connection as applied in societies. Music contains metaphors that are unique to a particular region or group of people. The study utilizes a robust review of literature relating to cultural metaphors in the region, improving the reliability of findings. This study is helpful since it provides an alternative way in which global business managers can gain an understanding of the Barbadian culture and way of life.

Cashman, A., Cumberbatch, J., & Moore, W. (2012). The effects of climate change on tourism in            small states: evidence from the Barbados case. Tourism Review, 67(3): 17 – 29. Retrieved          from     3

The authors examine the nature of Barbados’ greatest revenue earner in the phase of climate change. The major argument of the paper dwells on the fact that with the unpredictability of the global weather patterns, tourism may no longer be sustainable within the Caribbean region due to the threats posed by climate change. The paper conducts a thorough investigation of the current effects of climate change to Barbados and offers some adaptive measures or solutions that the state can take. The study examines various topics related to climate change such as rainfall patterns, biodiversity loss, sea levels and temperatures of the sea, general temperature, and erosion. The study conducts a review of past scientific literature detailing various aspects of climate change in the region. The application of an empirical approach helps in establishing the effect of climate change on Barbados. This makes the study findings reliable and unbiased. The findings of the study can be useful in examining the effects of climate change on different sectors of the economy such as tourism and agriculture.

Lituchy, T. R., Ford, D., & Punnett, B. J. (2013). Leadership in uganda, barbados, canada and the             USA: Exploratory perspectives. African Journal of Economic and Management     Studies, 4(2), 201-222. Retrieved from      ew/1370357274?accountid=12085

The authors investigate the concept of leadership in a number of countries including the United States, Uganda, Canada, and Barbados. The study seeks to explore two issues, which include the similarities and differences in the culture of the countries and the nature of leadership in the aforementioned countries. The study utilized a Delphi research questionnaire in each of the countries to investigate the various aspects of culture and leadership. In each of the four countries, a minimum of seven individuals or experts participated in the study. The study also utilizes a vast literature analysis drawn to explore leadership and culture issues in the four countries. The use of empirical analysis and review of literature improves the reliability of the study. The study is applicable in the research project since it helps assess the leadership styles and cultures in different countries including Barbados. Global business cultural analysis closely ties with leadership and the culture of a country.

Chan, A. W., & Cheung, H. Y. (2012). Cultural dimensions, ethical sensitivity, and corporate governance. Journal of Business Ethics, 110(1), 45-59. Retrieved from

This study investigates the concept of sound corporate governance practices in organizations across different countries. The study utilizes ethical sensitivity to investigate the difference in corporate governance among various countries. The importance of this study to the research project is that it helps in identifying the cultural influences on the ethical sensitivity of individuals especially with regard to organizations. The study utilizes an empirical approach by obtaining data from a variety of reliable datasets. The findings of the study indicate that the owners of a company have a strong influence in the nature of corporate governance in place. The study also highlights the close connection between cultural dimensions and the corporate governance practices in an organization. This is important in the global business cultural analysis since it suggests that the cultural background of the top management can significantly affect corporate governance practices. The article is therefore significant in the global business cultural analysis.

Chevrolet Camaro  Consumer Behavior

Chevrolet Camaro Consumer Behavior

Consumer behavior is critical in determining how consumers choose products while making a purchase decision. Consumer behavior reflects the motivations and the aspirations that drive consumers towards making the purchase decision. Four significant factors influence consumer behavior. These factors include the cultural factors such as trends and social classes, social factors such as reference groups and family, personal factors such as age and lifestyle, and lastly psychological factors such as individual perceptions. The consumer’s purchase decision is influenced by a combination of the aforementioned factors and other characteristics as well. This paper examines mainly the consumer behavior with regard to Chevrolet Camaro brand, and looks at the competitive insights as well as the bid idea.

The cultural factors influencing consumer behavior

Factors involving the cultural environment of the consumers greatly affect their purchase decision. The cultural environment greatly influences the values, preferences, and the common behaviors of the consumers. Cultural factors present in various markets particularly influence purchase of various brands around the world. The subcultures present in every society affect consumer behavior. Subcultures refer to groups of individuals united by similar values or that share the same experiences. Various subcultures that exist in every society include religions, age groups, ethnic groups, nationalities, and others. Chevrolet Camaro appeals more to the younger generation that is inclined to purchase pony cars with great speed and performance. According to Sintumuang (2016), the new Chevrolet Camaro ZL1 has an output of 640 HP, which is almost equivalent to Chevrolet’s sports car models.

Social classes also fall under the cultural factors influencing consumer behavior. There are three categories of social classes, which include the lower class, middle class, and the upper class. Individuals in each of the classes share similar consumption patterns and behaviors. The classes have different purchasing power and purchasing behavior, which ascribes them to their particular classes. Chevrolet Camaro appeals to the middle and the upper class groups. Priced from $25,000, the model is out of reach to those in the lower class. The lower class refers those who earn below $25,000 annually. The cultural trends in place also influence consumer behavior. Social pressure amplifies the cultural trends or the “Bandwagon effect”. Chevrolet Camaro is one of the car models gracing the 2016 New York Auto Show. According to Geier (2016), it is the Motor Trend Car of the Year for 2016. As such, the model is among the trend-setting car models that are in the market. Most consumers are likely to make a purchase of the Chevrolet Camaro brand due to the social pressure or the “bandwagon effect” to purchase what is currently trendy in the market.

Social factors

Social factors significantly affect consumer behavior. The social factors affecting consumer behavior in relation to purchasing the Chevrolet Camaro model include status, social roles, family, and reference groups. Reference groups refer to those groups that particular individuals associate and identify with. Individuals make comparisons about their lifestyle, behaviors or purchasing habits with the reference groups they identify with. Chevrolet Camaro is a luxury sports car that every motorsport-racing fan longs to drive (Chevrolet Camaro, 2016). The latest Chevrolet Camaro model aims to offer motorsports lovers a nimble performance and better driving experience at high speeds. As such, motorsports lovers are more inclined to purchase the Chevrolet Camaro model due to its athletic characteristics. The 2017 Camaro will also feature various sporty characteristics meant to entice motorsport lovers. Since it is a luxury car, the elite class of motorsport fans will mostly purchase Chevrolet Camaro. The aspirational group in this case is the elite class of motorsports fans such as pro driver Roger Penske, who drives a Chevrolet Camaro SS model for promotion purposes (Elmer, 2016).

Related: Chevrolet Camaro Situational Analysis

The social role and status also influence consumer behavior. Social role and status refer to the position an individual holds with respect to his line of work, club membership, group of friends, or even family. The social role and status influence consumer purchase behavior with reference to the Chevrolet Camaro model. The social role of an individual relates to the activities that an individual is entitled as per his or her profession. If for instance, one is a motorsports fan, it is likely that he/she will purchase a high performance car such as Chevrolet Camaro. The status of an individual also determines his or her purchasing behavior. For instance, CEOs and other higher-ranking individuals are likely to purchase Chevrolet Camaro since it is a luxury car. Chevrolet Camaro is high on style and thus attractive to individuals with high status in the society.

Personal factors

Various personal factors such as age, lifestyle, personality, and purchasing power affect consumer behavior. Age is a great factor in determining consumer behavior. The interests and needs of individuals change or evolve with time. As such, a particular product such as a car may be of much interest to a particular age segment. Chevrolet Camaro is a pony car designed for motorsport lovers and enthusiasts. According to young (2016), younger consumers are less interested in engine size but more keen on the horsepower and fuel consumption of a car. The 2016 Chevrolet Camaro features a modern interior designed to attract primarily young buyers. The car’s interior is sleek and designed to look the modern part. This is all in an effort to attract the “tech-conscious shoppers” (Young, 2016). The 2016 Chevrolet Camaro is donned with an attractive color display, touch screens, ambient lighting configurations, and other gadgets that define the younger tech savvy drivers.

The purchasing power significantly influences consumer behavior with regard to Chevrolet Camaro. Purchasing power relates to the affordability of the brand. Chevrolet Camaro brand ranges at $25,000, thus only those who can afford will be able to make a purchase. The lifestyle of an individual relates to the interests, activities or values that one holds. The lifestyle of individuals influences their purchase behavior. Personality also plays a great role in influencing consumer behavior. Personality relates to the character traits on individuals. Consumers who have an outgoing personality are likely to purchase pony cars such as Chevrolet Camaro compared with those with conservative personalities.

Psychological factors

The consumer behavior of Chevrolet Camaro’s buyers is also driven by various psychological factors such as motivation, perception, learning, beliefs and attitudes, and among others. Motivation is the driving force towards making a purchase or developing a purchase behavior. Motivations influences consumer behavior at the subconscious levels. In order for brands to encourage a purchase behavior among the consumers, they ought to create a need that acts in the mind of the consumers. The consumers act in turn to satisfy the need. The 2016 Chevrolet Camaro brand has more torque and horsepower than its closest competitor does, the 2015 Ford Mustang (Young, 2016). General Motors has successfully created a “need” in the minds of motorsports lovers to purchase a car that is not only lighter, but has more horsepower and torque.

Motivation closely ties with perception. Perception refers to the way individuals interpret information they receive. The perception process involves three distinct mechanisms that include selective attention, selective distortion, and selective retention. Selective attention refers to the process whereby individuals focus on a few details about a product. Likewise, Chevrolet Camaro consumers focus on a few details that General Motors advertises regarding the brand. General Motors focuses on the pony characteristics of the brand while neglecting other features such as fuel consumption. For instance, GM’s website describes the brand as the “most dependable sporty car”.

Competitive Insights derived from the Consumer Behavior Patterns

Application of modern technology: One of General Motor’s competitive insights relates to the application of modern equipment and gadgets, which makes the Chevrolet Camaro brand attractive to the younger generation. The 2016 Chevrolet Camaro’s design has modern equipment that entice the younger generation. The 2016 Chevrolet Camaro has an attractive color display, touch screens, ambient lighting configurations, and other gadgets that define the younger tech savvy drivers (Young, 2016). The brand employs energy saving technologies such as Direct Injection, automatic Active Fuel Management, and Valve Timing, all which enhance its fuel efficiency. Other technologies that make the brand impressive include the Apple CarPlay that enable synchronization with iPhone, voice-activated controls, wireless phone charging, Head-Up Display, power seats with Memory Package, and others.

Modern design: The 2016 Chevrolet Camaro is built on a smaller and lighter architecture than the previous brands. The modern design gives the Camaro an “athletic” shape. The modern Chevrolet Camaro has lost over 390 pounds compared to its predecessors. This gives the car better performance in terms of braking, maneuvering corners, and a nimble performance. The brand has body features such as rear quarter panels and a fastback profile that enables it to standout from other brands. Its presence is therefore hard to ignore. The modern design appeals to the personal factors such as age and lifestyle. It also appeals to social factors such as the social role. The modern design attracts the younger generation more compared to those above the age of 50.

Competitive pricing: Chevrolet Camaro’s pricing is competitive in nature in order to attract a particular class of consumers. The 2016 Chevrolet Camaro ranges at $26,695, which is relatively expensive than its closest competitor in the sports market, the Ford Mustang, which goes for $25,045. This price means that it is in the luxury group of cars, available to the middle class and the upper class consumers.

The Concept of “big idea”.

The concept of “big idea” in advertising refers to advertising methods that provide a vivid connection with the target audience of consumers of a product, and which are able to create and sustain a competitive advantage for a product. When firms use the concept of bid idea in advertising, they primarily aim at communicating the brand to consumers. The firms often create a strong message about a product, which they push to the consumers by appealing to their needs. The “bid idea” is thus what the firm tries to communicate to the consumers concerning a particular brand. A “big idea” should be able to transform beliefs, attitudes, or the behaviors of consumers regarding a particular product. The firm championing the “big idea” should own it wholly.

“Big idea” about Chevrolet Camaro.

2016 Chevrolet Camaro: Pony appearance

(Brauer, 2016).

The Chevrolet Camaro has four driver modes that the driver can use depending on the need. The driver modes include: Sport, Track, Snow/Ice, or Touring. The vehicle is fitted with an independent four-wheel suspension system that alters the quality of the ride depending on the mode selected. The quality of the ride changes between comfort and performance depending on the mode selected. This gives the car multiple functionality; the ability to act like a normal car offering quality ride, and the ability to shift to a sports car with emphasis on performance.


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Elmer, S. (2016, Apr. 20). Chevy Camaro SS to pace the 100th Indy 500. Autoguide. Retrieved     from           indy-500.html

Geier, B. (2016, Nov. 17). This the Motor Trend’s Car of the Year. FORTUNE.

Chevrolet Camaro. (2016). The 2017 Camaro. Retrieved from

Sintumuang, K. (2016, March 25). 10 Standout cars at the 2016 New York Auto Show. The Wall             Street Journal.

Young, A. (2016, Sep. 23). 2016 Chevrolet Camaro: GM says the sixth-generation Camaro has    been completely overhauled, with more muscle than the Ford Mustang. International    Business Times. Retrieved from   says-sixth-generation-camaro-has-been-completely-overhauled-1925759


Chevrolet Camaro Market Segmentation